We have been reporting on the ongoing legal battle between Nokia and Apple -which is based around the fact that Nokia are claiming Apple are breaching copyright patents in their iPhone. This case is due to last between 2 to 3 years so it certainly wont be resolved overnight.
Analysts believe that Apple will countersue Nokia for its own patents and allege separate infringement. This looks to be a messy legal battle and many predict it will actually end up in the hands of the U.S. International Trade Commission.
So what is this really all about? Well Nokia have alleged that Apple have violated ten patents which they own. They claim ownership of technology related to Global System for Mobile Communications (GSM), Universal Mobile Telecommunications System (UTMS) and Wirless Local Area Network (WLAN). The Finnish based company have argued the point that they have invested more than 40 billion euros into the R&D for these technologies in the last 20 years which gives it a huge scope of patent ownership. The company have also entered into licensing agreements with about 40 other companies for these patents.
Nokia claim that all iPhone models infringe on these patents – well those released since 2007 anyway. Even security, encryption and speech coding are involved.
Expert Analyst Gene Munster has predicted that Nokia are wanting a 1%-2% share of every iPhone sold which translates to $6 or $12. This could mean a huge amount reaching almost $1 billion.
All Apple have publically stated so far is that they will vigorously defend itself against Nokia’s complaint – this was filed in the annual form 10-K with the U.S. Securities and Exchange Commission.
Looking deeper in this, it seems that both parties may very well want a settlement to take place because it is very unlikely than any company could create a mobile phone without using Nokia patented technology but on the other hand Nokia don’t want to totally burn Apple either as their monetary income is so massive that even a small part of it would be massively beneficial to future R&D for the Finnish group.
Allan Campbell: Heaven Media.